Good day everyone, I’m new to investing and only started beginning of last year. I bought a few stocks and but the value of my investment has gone down by 70%. The thing that stresses me out is I wanted to but myself a new phone but instead risked it all in stocks thinking I would see a small return, even 5% but 1 year later, still nothing. Will it ever come back up and is everyone else experiencing this?
It’s difficult to say without knowing what you bought.
For me, I always review my justification to buy a security in the first place. Ignore short term ‘noise’, and if your justification remains the same, then hold to hopefully reap the long term rewards.
The only reasons I would sell, is if I believe the market has changed and my funds are better elsewhere, or to crystallise profit if I believe the company is currently overvalued in the short to medium term to buy back in later.
What stocks do you own?
- Asenus Surgical
- Beam Global
- Caladrius Biosciences
- Castor Maritime
- ChargePoint Holdings
- Dare Bioscience
- Diffusion Pharmaceuticals
- FuelCell Energy
- Gilat Satellite Networks
- Nano Dimension
- NIO Inc
- Romeo Power
- Sarepta Therapeutics
- Sesen Bio
- Steel Connect
- Sundial Growers
- Tyme Technologies
- US Well Services
Vast majority of these stocks (if not all) are high growth stocks. High growth stocks are high risk / high reward play.
A good high growth stocks with a strong balance sheet and almost no debt will likely recover. But other who have a lot of debts and do not manage to raise money to fund their operation will struggle to survive in the high interest rate environment.
I recognise some of these stock are penny stocks. Normally some of these stocks especially micro caps, with very low float are P&D stocks as it is easy to move the price with relatively small amount of money by the price manipulators.
About ever recover, well noone has a crystal ball. As above the good one, strong balance sheet and almost no debt will likely to recover. The price went down not because of the fundamental but because of sentiment (E.g exuberance) against the high growth stocks in this current climate. Down 50%+ for high growth stocks are not uncommon. But other stocks like normally P&D penny stocks, the price will only move up when another pumper is moving the price.
@nukeman5000 you really attack the stock market with Nuke option …
Just sell all those and buy Meta…you thank me later…
@nukeman5000 I think if you bought 31 stocks with the money you planned to buy a new phone, you probably spread yourself to thin to see that much return.
Also there couple of rules in investing (not trading) that you need to be aware of and without listing all of them, these two below you may find useful
1.0 Only invest money you can afford to loose
2.0 Only invest money that you haven’t got immediate need for
You could also look into “dollar cost averaging” and bringing your average price paid for some stocks down by investing while they are decreased. Only do these in stocks you have researched and have faith could recover.
When I started out years ago, I put money in and then left it, seeing it decrease. It was only when I started averaging out the price that rather than needing a specific stock to recover the 40% loss, I only needed it to recover 12% having averaged out the price I paid.
Your mileage may vary.
To be down 70% is pretty incredable, but you bought into growth stocks during a highly overvalued market, they have now adjusted back to a war like market.
If you hold long term 5-10 years you might see a return. You also might want to buy more to cost average in, as another comment has said, if you believe in the fundanmetals of these companies and that they are currently undervalued.
When you bought the shares what was the timeline you were working towards? You should always have a clear timeline for how long you plan to hold when you buy them.
Feel like this one is more just sh!t stuff than growth.
Yeah 70% down on portfolio is remarkable or was it 70% down on a number of stocks maybe
I was trying to be polite. 70% down on money you can not afford to lose must hurt.
That’s a lot of high risk - (maybe) high reward stocks. I myself am down 45% on NIO. Any particular reason behind choosing those?
A few growth stocks was decimated down to around 70% or even more. I believe which has potential to recover, as they have massive growth in revenue, A few to name
I own SHOP but I got it at quite a resolvable price average, currently down 15%. I believe it is only a matter of time before they start turn green.
Here’s your first problem
The idea of risk management in investing is you partly that you do research into companies, markets, and economics to have a level of satisfaction that your personal risk is minimised. If you did that before selecting your stocks, and nothing has changed with the fundamentals of the companies you bought, then there is no need to sell.
If you bought the stocks aiming for ‘free money’, that’s a different story.
@nukeman5000 I could only comment the stock I personally own, as I have done DD before buying it.
ChargePoint Holdings. Currently unprofitable but has a lot of potential also
Debt-to-Equity Ratio; N/A; Current Ratio 2.95; Quick Ratio 2.78. They have enough assets to back up its liability, so it is unlikely to go into administration. Also it has a lot of prospects due to infrastructure bill in the US. I am currently green in with stock. WS analysts Price target. High PT $34.00; Average PT $24.92; Low PT $17.00. I will not sell this stocks in fact I will keep it for a long term holding.
Nano Dimension. This stock has a very strong balance sheet with and lot of cashes. The reason why they are decimated is that because they have done quite a few share dilutions to raise cashes in the past when the price went up and the investors do not like it . This is also one of the ARK Invest holding.
Price / Sales Ratio 80.41; Price / Book 0.63; Current Ratio 41.00; Quick Ratio 40.65. Is has a lot of assets to back up. It is only that P?S is very high but this is due to they have not sold many machines, in fact they are focusing on acquisition. I fully believe this stock will triumph but it need patients. You might be waiting for a few years. I will not sell this stock.
NIO Inc. This is one of the best EV stock out there. The reason why it is decimated because of the sentiment against Chinese stock. But now the FUD has been cleared by the Chinese authority. I am also down 28%. I will not sell it in fact when I see the price below $15 I will add my position
Romeo Power. I also down 70%. The recent why it is decimated because they promise too much with their earning and when came to earning season it is downgraded because of disappointed result. Also it has a lot of prospects due to infrastructure bill in the US.
WS analyst PT: High PT $9.00; Average PT $5.67; Low PT $4.00.
Debt-to-Equity Ratio 0.01. Very little to no debt
Current Ratio 7.58; Quick Ratio 5.98: enough assests to back up its liability
Trailing P/E Ratio 51.33. because it is stil unprofitable. I will not sell this stock. In fct If I have more money and I see the price is bottoming I will l keep DCA (drip feeding it) with a smaller chunk.
I believe all of these stock will come back but it will need patient waiting for the bear market is over and the sentiment against unprofitable high growth stocks is over.
I have seen also many of your stocks are BioTech stocks such as NovaBay, ObsEva, Sarepta Therapeutic, Sesen Bio. These stocks are not that bad in my opinion it is only that they are currently unprofitable and vulnerable to short attack. They stocks like these could could go up significantly, not uncommon 100% in a day when there is catalyst such as successful drug/therapy trials. Some thing with Asensus Surgical. But keep in mind they might also go bankrupt if they are running out cash and they can not raise capital to fund their operation.
But again this is just personal opinion and what I am doing. You will need to do your own DDs to make your own decision
you bought some really crappy stocks, dont expect much going forward
And if you are looking for shorter/low risk then something like an all world index fund (VWRL is one i like) is probably best, unlikely to lose 70%, even 10-20% over a year is unlikely. If its less than a year then leave in cash for sure, or if its for something super important like a house then CASH is king.
Most of those stocks you will probably know little about…not a good portfolio for someone just starting out in investing…but I would hang on in …you have not lost until you sell
Tyme Tech had a good covid story about potential alternative treatments. Price shot up upon speculation. Best to dump a few of these risky stocks and go for a safer value stock. Think oil companies paying dividends